Section A: Answer ALL questions. (10 Marks] 1. Which of the following types of business organizations provides its owner with the advantage of a limited legal liability in cases of insolvency? A B. C. D. Sole-proprietorship only. Partnership only. Company only. Sole-proprietorship and partnership only. 2. The following account balances are classified as assets EXCEPT A. B. C. D. bank overdraft fixed deposit patents & trademarks loan to an employee 3. Choose the CORRECT accounting equation from the following alternatives: = A. B. C. D. Asset + Drawing - Expense = Liability + Owner's equity + Additional Capital + Revenue. Asset + Additional Capital + Expense = Liability + Owner's equity - Drawing + Revenue. Asset + Drawings - Revenue = Liability + Owner's equity + Additional Capital Expense. Asset - Drawing + Expense = Liability + Owner's equity + Additional Capital + Revenue. 4. The discount given by the seller to the buyer for paying the amount due within the stipulated time period should be recorded in the of the seller's book. moa A. B. C. D. sales journal purchases journal cash receipts journal cash payments journal 5. Identify the INCORRECT statement regarding the double-entry rules. A. B. C. D. Purchase of goods on credit should be recorded as a credit entry in the liability account. Revenue earned should be recorded as a credit entry in the revenue account. Drawing of goods should be recorded as a debit entry in the drawing account. Issuance of cheque should be recorded as a debit entry in the bank account